Apple (AAPL) Shares Gap Down After Analyst Downgrade

Apple Inc. (NASDAQ:AAPL) gapped down before the market opened on Monday after Nomura lowered their price target on the stock from $180.00 to $175.00. The stock had previously closed at $194.48, but opened at $189.00. Nomura currently has a neutral rating on the stock. Apple shares last traded at $183.09, with a volume of 36739057 shares changing hands.

Several other equities research analysts have also issued reports on AAPL. BidaskClub lowered Apple from a “buy” rating to a “hold” rating in a report on Tuesday, May 14th. ValuEngine lowered Apple from a “buy” rating to a “hold” rating in a report on Monday, May 13th. Morgan Stanley set a $220.00 target price on Apple and gave the stock a “buy” rating in a report on Tuesday, March 26th. Jefferies Financial Group boosted their target price on Apple from $160.00 to $210.00 and gave the stock a “hold” rating in a report on Wednesday, May 1st. Finally, JPMorgan Chase & Co. set a $235.00 target price on Apple and gave the stock a “buy” rating in a report on Tuesday, May 14th. Three equities research analysts have rated the stock with a sell rating, twenty-three have given a hold rating, twenty-one have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Apple currently has an average rating of “Hold” and an average price target of $211.40.

In other news, Director Arthur D. Levinson sold 35,000 shares of the business’s stock in a transaction that occurred on Friday, May 3rd. The stock was sold at an average price of $210.86, for a total transaction of $7,380,100.00. Following the sale, the director now directly owns 1,168,283 shares in the company, valued at $246,344,153.38. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Luca Maestri sold 51,138 shares of the business’s stock in a transaction that occurred on Friday, April 5th. The shares were sold at an average price of $196.61, for a total value of $10,054,242.18. Following the sale, the insider now owns 27,448 shares in the company, valued at $5,396,551.28. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 142,549 shares of company stock valued at $29,300,960. Corporate insiders own 0.05% of the company’s stock.



Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. grew its position in Apple by 0.3% in the fourth quarter. BlackRock Inc. now owns 296,598,349 shares of the iPhone maker’s stock valued at $46,785,423,000 after acquiring an additional 805,069 shares during the period. Oregon Public Employees Retirement Fund grew its position in Apple by 11,234.1% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 160,579,635 shares of the iPhone maker’s stock valued at $1,018,000 after acquiring an additional 159,162,851 shares during the period. FMR LLC grew its position in Apple by 1.3% in the fourth quarter. FMR LLC now owns 112,369,787 shares of the iPhone maker’s stock valued at $17,725,210,000 after acquiring an additional 1,473,983 shares during the period. Geode Capital Management LLC grew its position in Apple by 4.5% in the first quarter. Geode Capital Management LLC now owns 61,063,812 shares of the iPhone maker’s stock valued at $11,580,103,000 after acquiring an additional 2,649,400 shares during the period. Finally, Northern Trust Corp grew its position in Apple by 1.3% in the fourth quarter. Northern Trust Corp now owns 59,311,465 shares of the iPhone maker’s stock valued at $9,355,791,000 after acquiring an additional 733,392 shares during the period. Institutional investors and hedge funds own 57.36% of the company’s stock.

The stock has a market cap of $928.96 billion, a price-to-earnings ratio of 15.37, a price-to-earnings-growth ratio of 1.60 and a beta of 1.14. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.32 and a quick ratio of 1.26.

Apple (NASDAQ:AAPL) last announced its earnings results on Tuesday, April 30th. The iPhone maker reported $2.46 EPS for the quarter, topping the consensus estimate of $2.37 by $0.09. The company had revenue of $58.02 billion for the quarter, compared to analysts’ expectations of $57.40 billion. Apple had a return on equity of 51.29% and a net margin of 22.12%. The business’s revenue for the quarter was down 5.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.73 earnings per share. As a group, equities analysts expect that Apple Inc. will post 11.48 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Thursday, May 16th. Shareholders of record on Monday, May 13th were paid a $0.77 dividend. This is a positive change from Apple’s previous quarterly dividend of $0.73. The ex-dividend date was Friday, May 10th. This represents a $3.08 annualized dividend and a yield of 1.68%. Apple’s dividend payout ratio is presently 25.86%.

Apple declared that its board has authorized a stock repurchase plan on Tuesday, April 30th that authorizes the company to repurchase $75.00 billion in outstanding shares. This repurchase authorization authorizes the iPhone maker to buy up to 7.6% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its stock is undervalued.

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Apple Company Profile (NASDAQ:AAPL)

Apple Inc designs, manufactures, and markets mobile communication and media devices, and personal computers. It also sells various related software, services, accessories, and third-party digital content and applications. The company offers iPhone, a line of smartphones; iPad, a line of multi-purpose tablets; and Mac, a line of desktop and portable personal computers, as well as iOS, macOS, watchOS, and tvOS operating systems.

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